Kenya - Nairobi

Tourism Tattler - - BUSINESS & FINANCE -

Kenya’s econ­omy re­mains one of the most vi­brant economies in East Africa, and Nairobi is the main com­mer­cial cen­tre of the coun­try. In 2016 Kenya had strong GDP growth ris­ing to 6% thanks to the coun­try's cur­rency sta­bil­ity, low fuel prices and low in­fla­tion rates. Be­ing in one of the most sta­ble economies in Africa, Nairobi will of­fer an in­creas­ing num­ber of op­por­tu­ni­ties for in­vestors which will boost the econ­omy fur­ther.

Kenya has made sig­nif­i­cant struc­tural and eco­nomic re­forms that have con­trib­uted to sus­tained eco­nomic growth, the coun­try has re­ceived sup­port of the World Bank Group, In­ter­na­tional Mon­e­tary Fund and other de­vel­op­ment part­ners and they have brought pos­i­tive eco­nomic changes to the coun­try. Elec­tions are sched­uled for Au­gust 2017, gov­ern­ment has strength­ened se­cu­rity mea­sures ahead of the elec­tions, which may af­fect ho­tels' per­for­mance as tourists and in­vestors may see a risk of po­lit­i­cal un­rest, although at the time of writ­ing there were no signs of the threat­ened vi­o­lence.

Nairobi’s Ho­tel mar­ket of­fers sig­nif­i­cant in­vest­ment op­por­tu­ni­ties. In­ter­na­tional branded ho­tels are in­vest­ing in Nairobi as the re­gional hub of Africa and now also in se­condary cities. Tourist ar­rivals rose to 16.7% boosted by im­proved se­cu­rity and mar­ket­ing of tourism to in­ter­na­tional mar­kets. Oc­cu­pancy rates are up to 58.5%, an in­crease com­pared to 2015. RevPAR growth of 5.3%. There is an in­crease of new sup­ply and that can cause value growth to de­crease in 2017. The out­look for tourism in Kenya looks bright for 2017 as gov­ern­ment is sup­port­ing and mar­ket­ing the coun­try to the in­ter­na­tional and do­mes­tic mar­kets.

For de­tailed anal­y­sis visit http://hvi.hvs.com/mar­ket/africa/Kenya_-_Nairobi

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